DULUTH, Ga. (AP) - Agricultural equipment company Agco Corp. said Monday it agreed to buy a 50 percent stake in Laverda SpA from Italy's Argo Group.
Financial terms of the deal, which is subject to regulatory approval, were not disclosed.
Argo owns manufacturing, service and distribution companies in the agricultural machinery sector, while Laverda runs production facilities for harvesters in Europe, Agco said.
Besides producing Laverda-branded combines, the company manufactures mid-range combine harvesters for Agco's Massey Ferguson, Fendt and Challenger brands for distribution in Europe, Africa and the Middle East, Agco said.
Laverda posted net sales of about 133 million euros ($179.1 million) in 2006, Agco said.
The joint venture also includes Laverda's ownership in Fella-Werke GMBH, a German manufacturer of grass and hay machinery, and its 50 percent stake in Gallignani SpA, an Italian manufacturer of balers, the company said.